Saturday, September 13, 2008

Regular Counterespionage Audits Are Cheap Insurance, compared to this...

TX - Jim Damman thought somebody was looking over his shoulder for months. Little did he know that his office was routinely broken into and more than 150-million dollars worth of trade secrets were stolen without a visible trace according to a federal lawsuit. The President of Exel Transportation Services says his suspicion grew so strong that he took the unusual step of sweeping the company's Addison offices for electronic bugs.

Exel is not a business typically considered a target of corporate spying. It's a shipping broker. Inside its offices, logistic agents sit in front of computer terminals with telephones cradled to their ears. Hundreds of times a day, they match-up shippers to freight carriers and move loads of everything from potatoes to computer chips around the world...

Damman says a new start-up competitor in Plano named Total Transportation Services (TTS) stilled seemed to have an uncanny knack of taking away Exel's customers, "the competitor was like one step ahead of us but they could not have known we were going to see a certain person, they could not have known what we were going to talk about when we were going to see that person unless they were getting information somewhere. We knew something was wrong."

Two of the former Exel executives, Mike Musacchio and Roy Brown, are accused of installing a backdoor into Exel's computer system according to the lawsuit. An exhibit in the lawsuit features a series of email messages titled "You will enjoy this" that were exchanged between Musacchio and Brown last October. Musacchio who had left Exel a month earlier to set-up TTS asked Brown who was still working at Exel, "...how are we going to get into email after you leave?" Brown left Exel three days later for TTS after replying, "Not a problem. I have the back door password that only I know and no one else can change." Musaccho replied, "Beauty!"

The lawsuit alleges that the hackers brazenly created exact replicas of Exel's documents, such as contracts, budget templates, and spreadsheets, for use in connection with TTS's business. Damman says the looted information included a $300-thousand dollar marketing study, "It's scary...it's something we all have to watch out for in this electronic day and age that we are in." (more)

Counterespionage Audits are an important element of corporate security programs. If you don't conduct Counterespionage Audits, you need to. Please contact me for assistance.

Cops Shot While Installing Bug

NZ - The two South Auckland men charged over the shooting of Sergeant Don Wilkinson have been granted name suppression.

One man has been charged with murdering Mr. Wilkinson and another man has been charged with assault. Both have been remanded in custody.

A second police officer is undergoing surgery in hospital after being shot several times. His injuries are not life threatening.

The two police officers were installing a bugging device in a car outside a suspected P lab in the suburb of Mangere in the early hours of this morning when they were attacked. (more)

SpyCam in Cell Phone Headset

from mostreviews.com...
Sometimes the best place to hide something is in plain site. That’s the theory behind this camera set from Brando, which puts its lens inside a clip-on Bluetooth headset...

So, if someone's "Bluetooth" headset is not wire-less, beware.

eyePhone Is Watching You

Have you heard the latest surveillance concern floating around the tech world? Your iPhone may be storing an electronic log of your virtual footsteps, and it could one day be used against you.

iPhone hacker/data forensics expert Jonathan Zdziarski explained the issue in a webcasted demo. (more)

A-Bomb of a Confession, "Yeah, yeah, yeah..."

NY - In 1951, Morton Sobell was tried and convicted with Julius and Ethel Rosenberg on espionage charges. Through it all, he maintained his innocence.

But on Thursday, Sobell, 91, dramatically reversed himself, shedding new light on a case that still fans smoldering political passions. In an interview, he admitted for the first time that he had been a Soviet spy.

"Yeah, yeah, yeah, call it that, I never thought of it as that in those terms," said Sobell. (more)

...taps, you lose.

TX - The BexarMet Board of Directors voted Thursday evening to terminate the contract of its embattled general manager, Gil Olivares.

Olivares was suspended in August days after a Bexar County jury indicted him on charges of official oppression and illegal wiretapping, among other charges. (more)

Eavesdroppers Take Stock

NY - A federal judge on Friday denied a motion by a group of ex-securities brokers and former A.B. Watley Inc. executives to dismiss a criminal case against them in an alleged scheme to misuse brokerage firm "squawk" boxes.

Prosecutors have alleged that three ex-brokers placed open telephone lines next to the internal speaker systems at their companies so that Watley day traders could secretly eavesdrop on block orders by institutional clients. (more)

1/13/09 - UPDATE - The U.S. dropped its sole charge against a former A.B. Watley Group Inc. executive who was set to be retried next month in a case where day traders were accused of eavesdropping on institutional trades using “squawk boxes.”

Michael Picone, Watley’s former chief operating officer, agreed to cooperate with prosecutors, Assistant U.S. Attorney Jonathan Green said today. In return, the U.S. dropped the count of conspiracy to commit securities fraud, a crime punishable by as long as 25 years in prison.

“In exchange for the defendant’s cooperation, the government agrees to dismiss the charge against him,” Green told U.S. District Judge Jack B. Weinstein. (more)

Wednesday, September 10, 2008

"...and my loaded gun trick is hysterical!!!"

TN - A state lawmaker said Thursday night he attached a digital recorder under an aide’s desk as “just a prank,” but no one’s laughing now with the Tennessee Bureau of Investigation looking into the matter as a potentially serious case of bugging.

Rep. Jim Cobb, R-Spring City, said there was “no invasion of privacy done or intended” in the incident which involved his administrative aide, Paul Overhoiser.

The lawmaker, who represents Rhea County and part of Hamilton County, said he used Velcro to lash the recorder to the underside of the desk.

“It was where you could see it from the chair,” Rep. Cobb said in an interview. “I put it there and was going to come in and when Paul found it, he was going to jump up, run in and we were going to laugh about it. It was not hidden. It was not meant to do anything except be a joke.”

...Rep. Cobb, who recalled setting the device up on Tuesday, said he forgot about putting the recorder there until Thursday. (more)

Lawmaker? know better? aghhhh... (sing-a-long)

Your Cellular DNA - the Electronic Snitch Gene

How your cell phone evolved into a personal panopticon...
A recent article in the London Review of Books revealed that a number of private companies now sell off-the-shelf data-mining solutions to government spies interested in analyzing mobile-phone calling records and real-time location information. These companies include ThorpeGlen, VASTech, Kommlabs, and Aqsacom--all of which sell "passive probing" data-mining services to governments around the world.

...while it may be impossible for the NSA to legally obtain large-scale, real-time customer location information from Verizon, the spooks at Fort Meade can simply go to the company that owns and operates the wireless towers that Verizon uses for its network and get accurate information on anyone using those towers--or go to other entities connecting the wireless network to the landline network. The wiretapping laws, at least in this situation, simply don't apply. (more) (webinar pdf)

Update II - The Case of the Blue Mocking Bird

CA - The county has agreed to pay $660,000 to settle a federal civil lawsuit against Sheriff Pat Hedges in regards to an investigation of a secret recording of an October 2006 meeting.

The suit, filed by former Chief Deputy Gary Hoving in regards to the meeting between himself and Sgt. Jay Donovan, alleged Hedges and Undersheriff Steve Bolts had violated Hoving’s civil rights and liberties while illegally using taxpayers’ money to record the meeting. (more)

Why this is important to you in the corporate world...
Post facto discovery of electronic eavesdropping is expensive!

Costs include:
• the investigation,
• the lawyers fees,
• lost employee time,
• and this subsequent civil settlement

Proactive inspections
for bugs, wiretaps, wi-fi system loopholes and other info-leak pressure points – cheap insurance
.

SpyCam Story #465 - "OK, you help him."

Fury as sheriff spares toilet spycam lawyer from jail
Scotland - A pervert lawyer who filmed female colleagues on the loo was spared jail yesterday after a controversial sheriff branded his actions "clumsy".
Peter Fitzpatrick used a video camera hidden in a pile of cardboard boxes to spy on the ladies toilet. But Stirling sheriff Margaret Gimblett told Fitzpatrick his offence sounded like "a cry for help".

The dad-of-two grinned as he was sentenced. His punishment provoked fury from Mid-Scotland & Fife Tory MSP Liz Smith.

Ms. Smith said: "This man has committed a reprehensible offence and the public will be astonished by the suggestion that his victims were somehow at fault for not being more aware of the circumstances around them.

"How is that an excuse for his actions?" (more)

SpyCam Story #464 - "...another brick in the wall."

OH - A man who was caught placing a concealed video camera in his neighbor's home pleaded no contest on Tuesday. Police said Barry Stacks put a camera in his neighbor's bedroom on Pennsylvania Avenue. The woman discovered the camera in July and also found video cables and other holes in the bathroom where a camera was placed. (more)

Tuesday, September 9, 2008

SpyCam Story #463 - Bugged? Count on it.

from the seller's web site...
"Calculator spy camera, video and audio recorder.

When you want to record interviews, meetings, and office discussions without intimidating anyone, then the CVSD-627 wireless calculator video camera is the perfect answer. This working calculator has a subtle camera on the side for quietly viewing and recording all your important conversations.

The color video is recorded with audio in digital format by the included receiver so that you can view on the portable recorders LCD screen or connect to your computer for easier viewing and management of all your recordings. The wireless recorder is small enough to fit into a pocket if needed for use on the road." (more)

Why do we mention it?
So you know what you are up against.
Only $193.75, from Chinavasion.
China. Invasion.
Chinavasion.
Get it? (ugh)

Monday, September 8, 2008

...and reconnect with old ememies!

A social-networking site for the world of spying officially launches for the U.S. intelligence community this month.

...at the
CIA, the FBI and the National Security Agency, bosses are encouraging their staff members to use a new social-networking site designed for the super-secret world of spying.

"It's every bit Facebook and YouTube for spies, but it's much, much more," said Michael Wertheimer, assistant deputy director of national intelligence for analysis. (more)

Numbers Stations - Hear Spies at Work!

Numbers stations are shortwave radio stations of uncertain origin. They generally broadcast artificially generated voices reading streams of numbers, words, letters (sometimes using a spelling alphabet), tunes or Morse code. They are in a wide variety of languages and the voices are usually women's, though sometimes men's or children's voices are used.

Evidence supports popular assumptions that the broadcasts are used to send messages to spies. This usage has not been publicly acknowledged by any government that may operate a numbers station, but in one case, Cuban numbers station espionage has been publicly prosecuted in a United States federal court.


from Simon Mason...

"Here you can access the book "Secret Signals, The Euronumbers Mystery" which was written in 1991 and is now out of print. Thanks to the publisher "Tiare Publications " of Lake Geneva U.S.A. and Gerry Dexter its owner, I am able to reproduce the book..." (more) (audio clip 1) (audio clip 2) (extra credit)